UK house prices increase by 2.3%

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Good news has emerged for sellers in England and Wales hoping to fetch a good price on their home.

Average UK house prices increased by 2.3% over the twelve months between May 2011 and 2012, up from its previous 1.4% rise in April. This is despite the average house price remaining at £228,000, the same as in April this year.

In England, house prices rose by 2.6% and Wales by 3.5%, recording averages of £237,000 and £154,000 respectively.

House prices increased in five regions across England over the twelve months to May 2012. London continues to be the most expensive place to buy a home in the UK, with the average home costing £388,000. The capital's rise of 7.2% was the highest recorded since November 2010.

House prices in Scotland fell by 1%, while Northern Ireland suffered an even bigger slump of 10.3%. This is believed to be due to the market 'normalising' after a 'boom' period prior to the financial crisis.

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.